Your project has several risks that may cause serious financial impact should they happen. You have studied the risk events and made some potential risk responses for the risk events but management wa

Question

Options

• ARisk response plan
• BQuantitative analysis
• CRisk response
• DContingency reserve

• A
  3% (1)
• B
  13% (4)
• C
  7% (2)
• D
  77% (23)

Explanation

Creating a chart that assigns probability and financial impact to each risk event is the Expected Monetary Value (EMV) method of quantitative risk analysis - and the primary outcome of that analysis is a contingency reserve: a budget set aside to cover identified risks if they occur.

Why the distractors are wrong:

• (B) Quantitative analysis describes the process being performed (assigning numbers/dollars to risks), not the outcome of that process - the question asks what you end up with.
• (A) Risk response plan is a broader document detailing strategies (avoid, mitigate, transfer, accept) for handling risks - it isn't produced specifically by a probability/impact dollar chart.
• (C) Risk response refers to the actual action taken when a risk event occurs, not the product of financial risk modeling.

Memory tip: When you see "probability + impact + dollar amount," think "I'm calculating how much money to reserve." Dollars in → Contingency Reserve out. The financial quantification exists precisely to justify setting aside a specific budget - that budget is the contingency reserve.

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